“As India completes 100 years of independence in 2047, We are closer to India@100, Banks, Non banks, Fintechs, regulators and government shall be fostering innovation but the context should be broader to society in terms of inclusion,” said Shaktikanta Das, Governor, Reserve Bank of India.
Publicly available information places the number of FinTechs founded in India at approximately eleven thousand (11,000). The sector has received investments of about US$ 6 billion in the last two years alone, remarked the RBI governor addressing the Indian FinTech sector.
Financial sector is experiencing rapid digitalisation and innovation, we need financial inclusion, while confronting interconnectedness and Financial Institutions must adapt swiftlywhile leveraging technology and mitigating the connected risks, Das emphasised.
The RBI governor while addressing the keynote address, “Fintech innovations for India@100: Shaping the future of India’s Financial landscape’ at the fifth edition of Global FinTech Festival, Das set five priorities for India’s FinTech sector.
Digital Finance Inclusion
Beginning with the first priority, the central bank governor addressed the aspect of everyone having appropriate access to financial services. Quoting the progress in the Financial Inclusion Index, he said the government has climbed from 53.9 in 2021 to 64.2 in 2024.
Also, we succeeded in ensuring banking access within 5 km radius. The Jan Dhan accounts stand at a total of 30 Mn which completed 10 years this year, they were supposed to be zero balance accounts, and the reality has belied , many accounts are in the name of women with good amount of savings, 66% of those accounts come from semi urban and rural areas, Das emphasised.
Shaktikanta Das remarked on how digital financial inclusion has the unique advantage of scalability and cost effectiveness and tech can be leveraged to provide tailored financial services .
Fintechs may strive to offer accessible financial services, micro loans, insurance in remote areas through mobile apps with superior and safe customer experience
Deepening of Digital Public Infrastructure
To further deepen DPI which encompasses Aadhar, UPI, targeted payment solution like bill payments, there will be key tools to promote inter operation and cost effectiveness, said Das.
Frauds, and cyber threats are increasingly becoming a concern while Das pointed Blockchain and AI as solutions to enable security.
Continuous innovation is crucial in maintaining the edge, addressed Das.
Governor also recollected the recent announcement of ULI (Unified Lending Interface), earlier known as Public Tech Platform for Frictionless Credit (PTPFC), that has aims for the lending institutions to enable credit. He mentioned that the full scale of launch of ULI shall take place soon.
‘New Trinity’ of JAM-UPI-ULI will mark a revolutionary step forward in India’s DPI journey, he said.
Consumer Protection and Cybersecurity
With increasing reliance on digital infrastructure, Das stressed the importance of consumer protection. He highlighted the Digital Personal Data Protection (DPDP) 2023 Act, which emphasizes data minimisation, consumer rights to correct and erase data, and incentivizing robust data protection practices.
Das also pointed out the need for fintechs and banks to adopt customer-centric approaches, fair lending practices, and resilient IT infrastructure.
He underlined the expanding threat landscape in cybersecurity and the critical role of AI and cybersecurity measures in maintaining trust and long-term viability.
Sustainable Finance
India’s commitment to sustainable finance is reflected in its regulatory framework and initiatives like Sovereign Gold Bonds (SGBs) and green deposit frameworks. Das noted challenges in scaling green bonds and diverse set of larger investments.
He suggested that blockchain could enhance transparency in green bond issuance and that fintech innovations, such as digital platforms for trading green bonds, could support sustainable finance. Public-private partnerships will be crucial for transitioning to a low-carbon economy.
Global Expansion
Das emphasised the importance of international collaboration in cross-border payments and the potential for India to become a global hub. He mentioned progress in linking UPI with international fast payment systems, noting successes with countries like Bhutan, Nepal, Sri Lanka, Singapore, the UAE, Mauritius, Namibia, Peru, France and a few other countries.
“While we have successfully demonstrated the interoperability of CBDC with retail fast payment systems like UPI, we continue to gain from our experimentation on off-line solutions. As we make progress, we would be happy to co-operate with other nations in their CBDC efforts,” Das asserted.
